No. 32 On January 1, 2021, Inkjet Company acquired 40% of GICCompany by purchasing 8,000 shares for P1,440,000. On thedate of acquisition, Inkjet calculated that its share of the excessof the fair value over the book value of GIC's depreciable assetswas P150,000 and that the purchased goodwill was P120,000.At the end of 2021, GIC reported profit of P450,000 and paiddividends of P7.00 per share. Inkjet depreciates its depreciableassets over a 12-year remaining life.What is the amount of income Inkjet Company would reportfrom its investment in GIC for the year ended December 31,2021?P172,600P167,500P105,500P 56,000а.b.c.d.

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What is the amount of income Inkjet Company would report from its investment in GIC for the year ended December 31, 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

No. 32

On January 1, 2021, Inkjet Company acquired 40% of GIC
Company by purchasing 8,000 shares for P1,440,000. On the
date of acquisition, Inkjet calculated that its share of the excess
of the fair value over the book value of GIC's depreciable assets
was P150,000 and that the purchased goodwill was P120,000.
At the end of 2021, GIC reported profit of P450,000 and paid
dividends of P7.00 per share. Inkjet depreciates its depreciable
assets over a 12-year remaining life.
What is the amount of income Inkjet Company would report
from its investment in GIC for the year ended December 31,
2021?
P172,600
P167,500
P105,500
P 56,000
а.
b.
c.
d.

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